Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
June 5, 2018

(A Top Pick May 24, 2017. Up 4%). This company is doing well but it disappointed investors when it didn’t announce buybacks in its last earnings call. He thinks Goldman is acting responsibly and putting its money to work on growth. Late cycle business activity includes a lot of mergers and acquisitions, which Goldman Sachs will benefit from. They are also continuing to grow their bank and earning good returns. The growth rate from investing their cash flow in this is better than investors would get from dividends and buybacks. He is buying the company on its dip, expecting the stock to rise as interest rates rise.

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Goldman Sachs (GS-N)
June 5, 2018

(A Top Pick May 24, 2017. Up 4%). This company is doing well but it disappointed investors when it didn’t announce buybacks in its last earnings call. He thinks Goldman is acting responsibly and putting its money to work on growth. Late cycle business activity includes a lot of mergers and acquisitions, which Goldman Sachs will benefit from. They are also continuing to grow their bank and earning good returns. The growth rate from investing their cash flow in this is better than investors would get from dividends and buybacks. He is buying the company on its dip, expecting the stock to rise as interest rates rise.

HOLD
HOLD
June 5, 2018

This company benefits from online purchasing. It’s in a unique space, with contracts in place with large shipping companies. They have some exposure to rising fuel prices but will probably be able to pass on the price increases. The valuation is high but one could consider buying it.

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Cargojet Inc (CJT-T)
June 5, 2018

This company benefits from online purchasing. It’s in a unique space, with contracts in place with large shipping companies. They have some exposure to rising fuel prices but will probably be able to pass on the price increases. The valuation is high but one could consider buying it.

BUY
BUY
June 5, 2018

This has a unique position in Canadian industry. They are retail and financial services. This is a tough space but they seem to be weathering the storm. It’s well managed.

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This has a unique position in Canadian industry. They are retail and financial services. This is a tough space but they seem to be weathering the storm. It’s well managed.

HOLD
HOLD
June 5, 2018

This is a great company. Magna is an assembler (of cars) which is a good business. As cars become more technologically advanced, companies will probably rely more heavily on assemblers who can integrate the technology into the car. There are short term headwinds from NAFTA and potential reduction in car sales. He sees these as short-term risks and expects the company to be stronger three years from now than today.

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This is a great company. Magna is an assembler (of cars) which is a good business. As cars become more technologically advanced, companies will probably rely more heavily on assemblers who can integrate the technology into the car. There are short term headwinds from NAFTA and potential reduction in car sales. He sees these as short-term risks and expects the company to be stronger three years from now than today.

DON'T BUY
DON'T BUY
June 5, 2018

This trades at a very high multiple. It is a great Canadian name and their expansion in Asia will be favorable to the company but he sees the name as faddish. It would be unpleasant to be in this company when their products become too expensive or the next new product comes along.

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This trades at a very high multiple. It is a great Canadian name and their expansion in Asia will be favorable to the company but he sees the name as faddish. It would be unpleasant to be in this company when their products become too expensive or the next new product comes along.

DON'T BUY
DON'T BUY
June 5, 2018

This is a very well-run company. It is a strong defensive name--people will keep buying from this company when the economy goes down. However, it is trading at a very high valuation. Growth has justified that in the past. The company added credit cards a year ago and that increased the average sale considerably. It is also expanding online and owns a foreign company in a similar business. So there will be some growth but he is concerned that future growth will not keep up with the rise in the stock price, and that if there is a recession, the drop in value of this stock might be steeper than the growth in sales.

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This is a very well-run company. It is a strong defensive name--people will keep buying from this company when the economy goes down. However, it is trading at a very high valuation. Growth has justified that in the past. The company added credit cards a year ago and that increased the average sale considerably. It is also expanding online and owns a foreign company in a similar business. So there will be some growth but he is concerned that future growth will not keep up with the rise in the stock price, and that if there is a recession, the drop in value of this stock might be steeper than the growth in sales.

BUY WEAKNESS
BUY WEAKNESS
June 5, 2018

He prefers Visa to MasterCard. He prefers other financial service companies to either Visa or MasterCard because of the high valuation of both stocks but he would buy on a significant pullback.

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Visa Inc. (V-N)
June 5, 2018

He prefers Visa to MasterCard. He prefers other financial service companies to either Visa or MasterCard because of the high valuation of both stocks but he would buy on a significant pullback.